Nebula plc is looking at its sources of fi nance. It collects the following details. Currently, there are 500,000 ordinary shares in issue, with a market price of £1.50 and a current dividend of £0.30. The number of preference shares in issue is 300,000, with a market price of £1.00 and a dividend of 15p. There are £200,000 of long-term debentures carrying 12% interest. These are currently trading at £220,000.

Required:

Calculate Nebula’s weighted average cost of capital.